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Testing loyalty: Starbucks is changing its rewards program

Testing loyalty: Starbucks is changing its rewards program

Unrewarding

You may want to start redeeming stars if you’re deep into Starbucks’s market-leading reward scheme — some menu items will double in price from next Monday.

Some people have accused the chain of “greedflation” with customers now needing to spend twice as much in-store to get their hands on a complementary tea, coffee or snack in a clear sign that even “free” products aren’t immune to Starbucks price hikes.

Frothy sales

Free drinks, queue-skipping privileges, bonus days and even a birthday treat have kept the Starbucks Rewards members engaged, as it's grown into one of the largest loyalty programs in the country.

Indeed, since Starbucks started rewarding dollars spent in 2016 (rather than visits accrued) membership for the Starbucks Rewards program has rocketed. The coffee giant now counts some 30.4 million active members for the program in the US, meaning that ~12%, or nearly one-in-eight, American adults are loyal members of the club.

Starbucks loyalists may be particularly aggrieved by the changes considering that last quarter they netted the chain billions — a whopping 56% of total sales in US-operated stores came from Starbucks Rewards members last quarter. Now, with prices set to rise, their loyalty will really be tested.

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Disney+ subscribers are getting (another) price hike next month

Disney’s streaming prices are going to infinity and beyond.

Starting October 21, Disney+ with ads will climb to $11.99 a month (from $9.99), while the ad-free Disney+ Premium plan will rise to $18.99 (from $15.99). Annual Premium subscriptions will now cost $189.99, up from $159.99. Disney shares were flat on the news.

Bundles are getting pricier too: the Disney+/Hulu (with ads) package jumps from $10.99 to $12.99, while the Disney+/Hulu/ESPN Select bundle rises from $16.99 to $19.99. The premium ad-free version of that bundle goes from $26.99 to $29.99. Even legacy bundles that subscribers were allowed to keep will see hikes. For example: the Disney+ Premium/Hulu (with ads)/ESPN Select plan will now run $24.99 instead of $21.99.

After increasing prices four times in the past four years, Disney’s streaming unit finally became profitable last year. It’s yet another example of streaming services slowly raising prices and hoping consumers don’t notice or care enough to cancel.

Disney shares are up over 20% over the past twelve months.

business

Better Home soars after Opendoor kingmaker Eric Jackson dubs it the “Shopify of mortgages”

Shares of Better Home & Finance soared over 160% Monday after EMJ Capital founder Eric Jackson posted on X, dubbing the online mortgage lender the “Shopify of mortgages.” The post drew attention to BETR’s rapid growth.

He went further, calling BETR a “potential 350-bagger in 2 years.” In a subsequent post, Jackson argued that Better ought to be worth $626 per share today, and claimed that it should be worth $12,000 per share in two years.

Now, these are bold claims, but Jackson is coming off a rather successful called shot as the primary architect of the rally in Opendoor Technologies. After a similar series of posts where Jackson argued that Opendoor would be the next Carvana, retail interest in the real estate stock soared, mobilizing an “$OPEN Army” that has managed to gain the ear of management as they propel the stock upward.

Needless to say, when Jackson talks up a stock, retail at least will hear him out.

Better Home & Finance stock is now up a massive 682% year to date.

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Fox Corp.’s Lachlan and Rupert Murdoch might be part of the TikTok deal, Trump says

President Trump has said that Rupert Murdoch and his son Lachlan, the chief executive of Fox, are “probably” going to be involved in the investor group looking to buy TikTok in the US.

In an interview with Fox News that aired on Sunday, Trump suggested that the conservative media magnates would join partners including Oracle and Dell in the proposed US deal for the popular social media app.

business

Microsoft is hiking US Xbox prices for the second time in five months

Microsoft said on Friday that it is once again hiking the price of Xbox consoles in the US, this time by up to $70. According to the company, the new prices will take effect on October 3.

A Series X special edition console will now cost $800, up from $730. The standard Series X is now $650, up from $600. Pricing outside of the US will stay the same, Microsoft said.

If you’re feeling deja vu, that’s because Microsoft just did this back in May when it hiked its Xbox prices by up to $100 in the US. The standard edition of the Series X was $500 at launch, meaning the nearly 5-year-old console has seen a 30% price hike this year.

The update is “due to changes in the macroeconomic environment,” according to Microsoft, language mirroring that of rivals Sony and Nintendo when each hiked their own console prices last month. Industry analysts have long warned that tariffs like those imposed by President Trump could substantially increase the costs of video game console production.

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